Housing Snapshot - June 21, 2004 - 6/21/2004 - Mortgage Loan Refinance Debt Equity

Housing Snapshot - June 21, 2004

More segments of the economy began to pitch in and add strength to the recovery, according the Federal Reserve "Beige Book" report released last week. Big industry production surged 1.1% in May, with factory production the biggest slice of activity — a good sign that manufacturing is on a firm recovery path and the national recovery is gaining momentum. Overall hiring picked up "at a faster pace," and while producer prices rose 0.8% for the month, the Fed doesn't appear to view inflation as a "serious concern in the period ahead" as Fed officials signaled they intend to increase the benchmark overnight interest rate at a "measured," or gradual, pace starting as early as their next policymaking meeting later this month. Given the current economic environment, Frank Nothaft, Freddie Mac vice president and chief economist, anticipated that mortgage rates would remain "at or near their current consumer-friendly levels for the remainder of the year." Lumber prices, while still much higher than a year ago, began to decline last week. The price of framing lumber dropped $7 to $419 per 1,000 board feet, according to Random Lengths. Last year, the price was $309. The price of 15/32-inch 3-ply CDX southern west-east plywood declined $43 to $355 per 1,000 square-feet, and oriented strand board dropped $60 to $340, more than countering the $40 increase two weeks ago.